I just spoke with one of the law firms and they sent me a copy of the merger agreement that ARCT entered into with Realty. And it says that the Chairman and CEO agreed to vote their shares in favor of the deal and that if another company wants to make a higher bid it must first pay a penalty fee of $55 million! On top of this management entered into new employment agreements and gets to roll over their shares into the new company.
This is incredible. Here is the contact info of the law firm in case anyone else wants to contact them for info. Tripp Levy law firm 877-772-3975. Suggest others do and join the lawsuit to stop this theft.
The company went public 6 months ago and was doing great. Paying dividends and stock was rising. Then management saw an opportunity for themselves. They never shopped the company at all seeking other bidders. Instead negotiated a sweetheart deal for themselves with one company where they get to convert their shares for an equity ownership. Then they prevent anyone else from being able to make a higher offer cause they don't want their deal to be broken. Now us shareholders are left holding the bag with shares of a company that is far worse than what we had and for no premium, no dividends, and less ownership stake.
How is any of this fair? Count me in this lawsuit!
I agree we were sold down the river but I don't see any benefits for management. They own stock in the best REIT around. Why would they want to convert to O either. My only guess is that management wanted to be able to say they took their deal full cycle (all the way to absorption by O) in record time. Nothing financial to benefit management that I have seen. Just bad news all the way around but great for O.
I am not happy with the deal. All the trash those worthless attorneys are feeding you are quite normal. The penalty fee is only about $.30 per share so they should do a "go shop" deal to find a $13 or better cash offer. Stock traded above $13 today in pre market which is what those crooked attorney's said in their press release the firm is worth (according to Yahoo finance analyst they referenced). As long as management of ARCT did not get a golden parachute, the deal is not to management's favor. I don't know why they did it except to be able to say it will be the fasted turn around and death (through merger) of a non-traded reit in history.